News from the SMF, Now Part of the Enlightened Enterprise Academy
The Covid pandemic has made 2020 a very strange year indeed. We were still getting over the previous global banking crisis of 2007/8. At the same time, we have begun facing up to the Climate Crisis and the growing number of major problems. Then there is the continuing terrorist threat, the migrant crisis, growing inequality, the rise of the far-right and populism, the loss of confidence in capitalism, the loss of trust in business, and the very apparent incompetence of our institutions to address these problems.
It is not hard to see that all the problems are all related. And we increasingly recognise the problems are both symptoms and causes of the fact our world is increasingly volatile, uncertain, complex, and ambiguous - VUCA to use the now often-quoted term.
During the same week as the covid really started have an impact in the UK, the SMF ran a conference at the Royal Society Arts in London. The topic was “Undaunted: How Successful Leaders Face Up to Wicked Problems and Avoid Predictable Surprises”. It could not have been a more apt topic for our time. But whilst some leaders are undaunted it is clear that many are.
For too many leaders clearly lack the competence and capabilities to deal with today’s problems. They have been trained in management theories and practices focused on solving problems, where solutions can be identified if they are analysed properly – “tame” problems. The problem is most of today's problems are “messy” and “wicked”. The consequence of not having leaders with the right mindset and capabilities is clear. The PwC Crisis Survey 2019 finds large companies can expect to have to deal with a major crisis every year, and smaller companies every two years.
This problems clearly extend beyond business, to governments and public sector organisations - to all types of organisations. The Covid crisis has made that very apparent.
In this context, it is hardly surprising there is so much talk of ensuring a better “new normal”, with very few people wanting to return to the “old normal”. This despite the fact nobody has any idea what the new normal may look like, or even what they want it to look like.
After the last Crisis, I had considered writing a vision for a better future. I was going to call it the Enlightened Enterprise Manifesto, a values-led and principles-based approach to business that I call Valueism. I have been developing the idea of Valueism, but I didn't write the manifesto yet. I am glad I haven't. But, in the early days of the lockdown, I decided now is the time we really need to start seeing more visions of a better future, to foster more debate and action. I am currently working on the manifesto.
As I continued to reflect on the current conversation, my own focus, and that of SMF, I considered the fact we learned very few lessons from the last crisis. Then I asked myself why that was. There are many reasons, of course. I already mentioned the inadequate management theory and practice preached by business schools. I think another major factor is the lack of systems thinking. Too many subject matter and function-focused experts with specialist knowledge are unable to see the big picture – the way systems are so interconnected and interdependent.
Our increasingly VUCA, messy and wicked problems require multi-disciplinary teams working cooperatively if they are to be resolved, but we lack the institutions to facilitate this. Even or universities are still structured as siloed faculties in most cases. And the gap between academic theory and real-world practise remains a huge one.
This crisis, and the economic crisis it is creating, are likely to be far greater in scale, scope, and impact than the last one. We cannot afford to make the mistake of failing to learn the lessons as we did last time. And we need to try and soften the blow if we can.
Whilst thinking how the respond in the best way possible, I concluded that our biggest challenge is going to be that of getting all the disciplines, and their diversity of ideas, pooled and shared for the benefit of all - so more people can contribute to the development of system-wide solutions.
Addressing that challenge generated my second conclusion. We need to launch large enough, and important enough, research-led inquiries to attract the best thinkers from a very broad range of disciplines, keeping a focus on the search for practical solutions.
The second conclusion forced me to consider which past inquires had produced the greatest impacts. In particular, works related to my goal, “sustainable widely shared prosperity, measured in terms of human flourishing and wellbeing”. I quickly settled on Adam Smith and his Wealth of Nations, but also considered his previous work, his Theory of Moral Sentiments.
Smith’s 18th Century thinking still has a profound impact. But in over 250 years much has changed. One example is what Smith meant by “wealth”. Today it is most often understood to mean monetary or material wealth. That was not the case in Smith’s time. Then it meant something closer to prosperity as I define it. And the word originates from the concept of wellbeing. Additionally, Smiths thinking about wellbeing was is closely related to his philosophy concerning “moral sentiments” i.e. attitudes to morals, values, and ethics.
After further thought, I settled on the idea of three large, long-term, open, global, multi-disciplinary inquires, to update Smith’s thinking for the 21st Century. I believe such projects might be considered large enough and important enough to attract serious thinkers.
Inquiries to develop a "21st Century Theory of Moral Sentiments" and a "21st Century understanding of the nature and causes of the Prosperity of Nations", both relate directly to Smith’s two works. A third Inquiry will generate a "21st Century Theory of Value".
Smith’s Wealth of Nations was based on a theory of value, derived from the discussion of morals, ethics and values discussed in his first book. But, because the topic is of fundamental importance, I wish to make this a distinct inquiry informed by and informing the insights of the other two. All three will be run simultaneously to ensure synergy between them.
Readers who have followed my thinking for some time will be aware that this approach is related to suggestions, that all forms of enterprise should be focused on value creation, with value defined in relation to values. I have called the approach Valueism. I have also advocated that we need more understanding of philosophy in management. The concept of the Social Contract, and the related idea of Social Contract Accounting, are also closely related.
The three inquiries, Valueism, Philosophy in Management and Social Contract Accounting will be among several initial ideas, inquiries and projects spearheading the development of the Enlightened Enterprise Academy. The academy will also be a platform for other ideas that can contribute to a vision of a better new normal.
Those other ideas will come in the form of contributions from a global multi-disciplinary faculty that is far larger than that found in any business school or university. The faculty will be experts with insights based on experience, and academics with a focus on improving practice – pracademics as some call themselves. the insights will be shared in publications, at events and through courses.
The academy is to be a platform for progressive thinkers from any relevant discipline, by individuals who share a belief that the goal of all enterprise should be contributions to sustainable widely shared prosperity measured in terms of human flourishing and wellbeing.
The term 'enterprise' is defined broadly as, “the purposeful activity of a person or organisation of any type and in any sector, to achieve an objective”. I have also defined what I mean by the terms 'academy' and 'enlightened' in this article.
To learn more about the Enlightened Enterprise Academy, or which the Strategic Management Forum will now be a part, visit the website and subscribe to the mailing list to receive the newsletter.
The Academy is in a soft launch stage so more news will be shared regularly. In the meantime, I also welcome expressions of interest from people who may wish to join the faculty and may wish to take part in the big launch which will be an online Festival of Enlightened Enterprise Ideas. mailto:paul@enlightenedenterprise.ac